151-0318/06 – Mathematics of Finance (FM318)

Gurantor departmentDepartment of Mathematical Methods in EconomicsCredits4
Subject guarantorMgr. Taťána Funioková, Ph.D.Subject version guarantorMgr. Taťána Funioková, Ph.D.
Study levelundergraduate or graduateRequirementCompulsory
Year2Semesterwinter
Study languageCzech
Year of introduction2011/2012Year of cancellation2022/2023
Intended for the facultiesEKFIntended for study typesBachelor
Instruction secured by
LoginNameTuitorTeacher giving lectures
FUN01 Mgr. Taťána Funioková, Ph.D.
RUC05 RNDr. Pavel Rucki, Ph.D.
Extent of instruction for forms of study
Form of studyWay of compl.Extent
Full-time Credit 1+2

Subject aims expressed by acquired skills and competences

The main objective of the course is to help students understand the current concepts of finance, by solving specific problems. After completing this course the student will be able to classify and develop its current knowledge of valuation not only of various securities and get acquainted with issues of bond portfolio immunization, practical portfolios risk measurement and diversification. We focus on application of basic financial decision-making procedures based on the concept of time value of money with use of the MS Excel spreadsheet, including its Solver Add-in.

Teaching methods

Lectures
Tutorials

Summary

The aim is to acquaint the students with the fundamentals of saving and investing that are of long-life practical use. These include savings accounts, annuities, loans, certificates of deposit, and buying and selling bonds or stocks including a bond portfolio target date immunization and an introduction to stock portfolio optimization. For all the problems a mathematical background, as well as an implementation using Microsoft Excel is introduced.

Compulsory literature:

FUNIOKOVÁ, Taťána. Introduction to financial mathematics. Ostrava: VŠB-TU Ostrava, 2017. ISBN 978-80-248-4081-9. LOVELOCK, David, Marilou MENDEL a A. Larry WRIGHT. An introduction to the mathematics of money: saving and investing. New York: Springer, c2010. ISBN 978-1-4419-2232-8. BENNINGA, Simon a Benjamin CZACZKES. Financial modeling. 3rd ed. Cambridge: MIT Press, c2008. ISBN 978-0-262-02628-4.

Recommended literature:

BREALEY, Richard A., Stewart C. MYERS a Franklin ALLEN. Principles of corporate finance. 11th global ed. Maidenhead: McGraw-Hill Education, c2014. McGraw-Hill series in finance, insurance, and real estate. ISBN 978-0-07-715156-0. BENNINGA, Simon; MOFKADI, Tal. Principles of finance with excel. New York, NY: Oxford University Press, 2006. ISBN 978-0190296384. DAY, Alastair. Mastering Financial Mathematics in Microsoft Excel 2013: A Practical Guide To Business Calculations. Pearson UK, 2015. ISBN 9780273730330.

Way of continuous check of knowledge in the course of semester

Vypracování korespondenčních úkolů v elektronické podobě a závěrečný test.

E-learning

Není.

Other requirements

No additional activities required.

Prerequisities

Subject has no prerequisities.

Co-requisities

Subject has no co-requisities.

Subject syllabus:

Subject’s Syllabus: • Simple interest, some of the short-term securities • Compound interest • The time value of money and investment decision-making • Money saving • Income • Debt redemption • Models of income and loans • Introduction to securities analysis • Introduction to (financial) risk

Conditions for subject completion

Full-time form (validity from: 2011/2012 Winter semester, validity until: 2015/2016 Summer semester)
Task nameType of taskMax. number of points
(act. for subtasks)
Min. number of pointsMax. počet pokusů
Exercises evaluation Credit 100 (180) 55 2
        Korespondenční úkoly Semestral project 20  15
        1. průběžná písemka Written test 40  20 1
        2. průběžná písemka Written test 40  20 1
        Souhrná písemka Written test 80  40 2
        1. průběžná písemka - 2. pokus Written test 0  0 1
        2. průběžná písemka - 2. pokus Written test 0  0 1
Mandatory attendence participation:

Show history

Conditions for subject completion and attendance at the exercises within ISP:

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Occurrence in study plans

Academic yearProgrammeBranch/spec.Spec.ZaměřeníFormStudy language Tut. centreYearWSType of duty
2020/2021 (B6209) Systems Engineering and Informatics (6209R017) Informatics in Economics P Czech Ostrava 2 Compulsory study plan
2019/2020 (B6209) Systems Engineering and Informatics (6209R017) Informatics in Economics P Czech Ostrava 2 Compulsory study plan
2018/2019 (B6209) Systems Engineering and Informatics (6209R017) Informatics in Economics P Czech Ostrava 2 Compulsory study plan
2017/2018 (B6209) Systems Engineering and Informatics (6209R017) Informatics in Economics P Czech Ostrava 2 Compulsory study plan
2016/2017 (B6209) Systems Engineering and Informatics (6209R017) Informatics in Economics P Czech Ostrava 2 Compulsory study plan
2015/2016 (B6209) Systems Engineering and Informatics (6209R017) Informatics in Economics P Czech Ostrava 2 Compulsory study plan
2015/2016 (B6209) Systems Engineering and Informatics (6209R017) Informatics in Economics P Czech Uherské Hradiště 2 Compulsory study plan
2014/2015 (B6209) Systems Engineering and Informatics (6209R017) Informatics in Economics P Czech Ostrava 2 Compulsory study plan
2013/2014 (B6209) Systems Engineering and Informatics (6209R025) System Engineering and Informatics P Czech Ostrava 2 Compulsory study plan

Occurrence in special blocks

Block nameAcademic yearForm of studyStudy language YearWSType of blockBlock owner
Subject block without study plan - EKF - P 2014/2015 Full-time Czech Optional EKF - Faculty of Economics stu. block

Assessment of instruction



2020/2021 Winter
2019/2020 Winter
2018/2019 Winter
2017/2018 Winter
2016/2017 Winter
2015/2016 Winter